Today’s insurance consumers have very different needs to those of 20 years ago, with a broad choice of providers, they are more selective, and, with a range of communication channels, they are able to interact on their own terms. Insurance companies are expected to offer an exemplary and transparent multi-channel customer experience, competitive with other leading retail brands. If they don’t, the customer is now more likely to leave — JD Power Associates and Forrester both estimate the risk of attrition from poor servicing to be more than 20%.

The insurance business is not inherently high touch, which puts more pressure on insurers to make the most of every customer conversation. As insurers move to become more customer-centric, it is important to find ways of balancing traditional and alternative interaction channels as existing communication mechanisms are not sufficient to respond to policyholders’ needs.